N.Y. State Finance Law § 207: Employee benefit fund; professional, scientific and technical services

§ 207. Employee benefit fund; professional, scientific and technical

services. 1. Definitions. As used in this section, unless otherwise

expressly stated:

a. "Director" shall mean the director of employee relations.

b. "Employee" shall mean any person in the service of the state of New

York who is appointed to and serving in a position in the collective

negotiating unit designated as the professional, scientific and

technical services unit established pursuant to article fourteen of the

civil service law who is otherwise eligible for health insurance

coverage pursuant to law and the rules and regulations of the department

of civil service, except that it shall not mean seasonal employees whose

employment is expected to last less than six months, employees in

temporary positions of less than six months duration, or employees

holding appointments otherwise expected to last less than six months.

2. Where, and to the extent that, an agreement between the state and

an employee organization entered into pursuant to article fourteen of

the civil service law so provides on behalf of employees and upon audit

and warrant of the comptroller, the director shall provide for the

payment of monies quarterly to such employee organization for the

establishment and maintenance of an employee benefit fund established by

the employee organization for the employees in the negotiating unit

covered by the controlling provision of such agreement providing for

such employee benefit fund, such amount to be determined consistent with

the procedure established in said agreement and on the basis of the

number of employees on the payroll during the payroll period the last

day of which ends no later than twenty-one calendar days before the

beginning of the quarter next following such day as determined by the

comptroller unless there is an agreement entered into pursuant to such

article fourteen between the state and such employee organization for

the determination during a different payroll period of the number of

employees in positions which are on an appointment cycle which does not

place them on payroll at the time that such number of employees would

otherwise be determined. The amount, which will be determined pursuant

to this section, for employees who are paid from special or

administrative funds, will be paid from the appropriations as provided

by law, in which case the comptroller will establish procedures to

ensure repayment from said special or administrative funds. The director

may enter into an agreement with an employee organization which sets

forth the specific terms and conditions for the establishment and

administration of an employee benefit fund as a condition for the

transmittal of monies pursuant to this section.

3. Such employee organization shall periodically as specified by the

director, supply a description of the benefits purchased or provided by

the employee benefit fund, the utilization experience of the benefit

fund, the amount disbursed for or the cost of such benefits and such

other information as may be requested by the director.

4. The employee organization shall report to the comptroller, in the

form and manner as he may direct, the amount it expended for the

purchase of or providing for such benefits for any period specified by

the comptroller. The comptroller is hereby authorized to audit the books

of the employee organization with respect to any monies transmitted to

it pursuant to this section.

5. Neither the state nor any officer or employee of the state

(including "employee" as defined herein and any other employee of the

state) shall be a party to any contract or agreement entered into by any

employee organization providing for benefits purchased in whole or in

part with monies transmitted to such employee organization pursuant to

this section. No benefit provided pursuant to such contracts or

agreements shall be payable by the state and all such benefits shall be

paid by the responsible parties to such agreements or contracts pursuant

to the terms and conditions of such agreements or contracts. The

employee organization shall be a fiduciary with respect to an employee

benefit fund established pursuant to this section.

6. Nothing herein shall be deemed to diminish, impair or reduce any

benefit otherwise payable to any employee established or authorized by

law, rule or regulation by reason of such employee's lack of eligibility

to participate in any benefit program established by an employee

organization pursuant to this section.

7. In the event it is determined that the monies transmitted to an

employee organization pursuant to this section is income for which

payroll deductions are required for income tax withholdings from the

salary or wages of employees pursuant to law, the comptroller shall

determine the amount of such withholdings required and deduct the amount

so required to be withheld from the salary or wages of the employees

concerned.

8. The employee organization shall indemnify the state for any claims

whatsoever paid by it arising from the establishment, administration or

discontinuation of any employee benefit provided pursuant to this

section, together with reasonable costs of litigation arising therefrom.

9. Insofar as the provisions of this section are inconsistent with the

provisions of any other act, general or special, the provisions of this

section shall be controlling.